How Peru Picked a Fighter Jet, Then Tore Up the Deal and Switched

Latin America · Defense

Peru spent more than a decade choosing a new fighter jet, settled on one, and then changed its mind, in a saga that lays bare how politics shapes billion-dollar arms deals.

Buying a fighter jet is rarely just about the aircraft. Peru has just proved the point in spectacular fashion.

For a reader abroad, the short version is striking. The country picked one jet, then reversed itself and bought a rival, all inside a year of political turmoil.

The competition had run for more than a decade. Three of the world’s leading combat aircraft were in the race for a contract worth around three and a half billion dollars.

The contenders were Sweden’s Saab Gripen, the American F-16 and France’s Rafale. The choice between them would shape Peru’s air force for a generation.

Each came with a very different price. The Gripen sat at the lower end, the F-16 in the middle, and the Rafale far above both, which helped knock the French jet out of contention early.

Delivery speed mattered just as much as cost. Saab promised the first jets within two years of signing, while its rivals quoted timelines stretching to five.

The fighter jet that won, then lost

In the middle of 2025, Peru appeared to have decided. Officials signalled they had chosen the Gripen, citing its lower cost and a far quicker delivery schedule than its rivals.

The logic looked sound on paper. The Swedish jet is cheaper to buy and to fly, and it can operate from rough, remote airstrips, a useful trait in a country of jungle and mountains.

Then Peru’s politics intervened. The decision was never formalised before President Dina Boluarte was impeached in late 2025 amid protests and corruption allegations.

What followed was a rapid churn of leaders. A new caretaker government reviewed the choice and, in early 2026, reversed it in favour of the American jet.

Why the switch happened

On pure economics, the reversal is hard to explain. The Gripen had been the cheaper option, and the American aircraft demands more dedicated infrastructure and costs more per flight hour.

Officials in Lima were unusually candid about the real driver. They acknowledged that choosing the F-16 was, above all, a political decision rather than a purely technical one.

The pull of Washington matters here. Buying American aircraft binds a country more tightly to the United States for spare parts, upgrades, training and diplomatic goodwill.

The jet itself is no consolation prize. The F-16 Block 70 is the most advanced version of a combat-proven design, and Peru will be the only Latin American country to fly the new-build model.

A contest for South America’s skies

Peru’s drama is one act in a larger play. Across South America, two aircraft are competing to become the standard fighter of the region.

On one side is the Gripen, backed by a deep partnership with Brazil. Brazil now assembles the jet at home and has made itself a regional production hub, and Colombia has chosen it too.

On the other side is the F-16, the most widely flown Western fighter in history. Chile and Venezuela operate older versions, and Argentina recently bought secondhand examples.

Peru’s flip tilts the balance back toward the American jet. It also hands Sweden a second painful near-miss in the region after appearing to win, then losing, a major contest.

For Saab, the stakes go beyond one sale. Each new operator builds a regional network of parts, training and maintenance that makes the next sale easier, so losing Peru is a strategic setback as much as a commercial one.

Washington, by contrast, gains more than a contract. Every F-16 sold deepens the web of military ties that has long underpinned American influence across the hemisphere.

What it means for Peru

The practical need is real and pressing. Peru’s current fighters are aging French Mirage 2000s and Russian-built MiG-29s, many of them barely flyable.

Western sanctions on Russia have made the MiGs especially hard to maintain. Spare parts are scarce, leaving a shrinking number of jets fit to fly at any given time.

The cost is heavy for a country with a modest defense budget. The purchase is being financed through a national bank loan, to be repaid by the treasury over roughly two decades.

For a foreign reader, the lesson is broader than one country. It shows how a multi-billion-dollar defense deal can hinge less on the merits of the hardware than on who holds power the week the contract is signed.

Frequently Asked Questions

Which fighter jet did Peru choose?

Peru ultimately selected the Lockheed Martin F-16 Block 70, confirmed in 2026. It had earlier signalled a preference for Sweden’s Gripen before reversing the decision during a period of political upheaval.

Why did Peru change its mind?

An impeachment and a change of government led to a review that favoured the American jet. Officials acknowledged the switch was largely a political decision rather than a purely technical one.

How much does the deal cost?

The acquisition is worth around three and a half billion dollars. It is being financed through a national bank loan, to be repaid by Peru’s treasury over roughly eighteen to twenty-four years.